Themes

• General mood is “risk off”
• U.S. President Biden: Omicron won’t lead to “shutdowns or lockdowns”
• Currencies hold familiar ranges, U.S. stocks gain

What’s Moving

Currency trade was consolidatory overnight, with European players waiting for the U.S. to open and U.S. traders taking solace from President Biden’s comments that the new Covid variant wont lead to “shutdowns and lockdowns.”

Pretty much everything held within recent ranges, with no extensions seen on any of the majors. Sterling underperformed on the day with covid concerns still pressuring that currency.

U.S. stock markets had a strong day after the Biden comments on Omicron.

Thoughts

We have some interesting local data today, but for the most part, expect consolidating and ranging to continue in Asia as we await a break directive break from offshore markets.

Data today sees:

• Japanese Unemployment (E: 2.8%)
• Australian Building Approvals (E: -1.4%) and Current Account (E: 29.3bln), and 
• Chinese Manufacturing PMI (E: 49.8)

Pivot Points